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Author: Dorota Anna Piaskowska-Lewandowska
Publisher:
ISBN: 9789056681449
Category : Joint ventures
Languages : en
Pages : 144
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Author: Dorota Anna Piaskowska-Lewandowska
Publisher:
ISBN: 9789056681449
Category : Joint ventures
Languages : en
Pages : 144
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Book Description
Author: Gautham Gopal Vadakkepatt
Publisher:
ISBN:
Category :
Languages : en
Pages :
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In this dissertation, I develop frameworks and models capturing the effects of marketing capital and R and D capital on firm growth and sustained membership in the Fortune 500 cohort. Drawing on the resource-based view (RBV) of the firm and industrial organization theories, in the first essay, I develop hypotheses on the relationships among a firm's marketing capital, R and D capital, key firm-specific and industry-specific factors and survival as a Fortune 500 firm. I test these hypotheses using a proportional hazard model on a uniquely compiled large panel data set of manufacturing Fortune 500 firms over a 25-year period. The results show that while both marketing and R and D capitals have significant and direct positive associations with survival as a Fortune 500 firm, the moderating effects of industry growth on the relationships between marketing capital and survival as a Fortune 500 firm and between R and D capital and survival as a Fortune 500 firm is asymmetric. It is positive for marketing capital but negative for R and D capital. Thus, to retain firms' position on the Fortune 500 list, managers may want to consider investing more in marketing (R and D) when industry growth is high (low). In the second essay, I examine the effect of advertising capital and R and D capital, their complementarities, and their interactions with the environmental contingency factors of dynamism, munificence, and complexity on sales growth, profit growth, and market value growth. Using dynamic panel data analysis of 185 firms over an eight year period (2000-2007), I uncover a nuanced understanding of how advertising and R and D capital affect these performance measures. My results show that both R and D capital and advertising capital directly affect sales growth, but neither has a direct impact on profit growth. Furthermore, R and D capital has a direct impact on market value growth. I also find that while the interaction of advertising capital and R and D capital does not directly affect sales growth or market value growth, it has a positive direct impact on profit growth. Finally, I find that environmental contingencies matter. For instance, environmental dynamism negatively (positively) moderates the relationship between R and D (advertising) capital and sales growth.
Author: Wenfeng Tong
Publisher:
ISBN:
Category : Joint ventures
Languages : en
Pages :
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Abstract: The dissertation consists of three empirical essays that aim to test real options theory in the corporate strategy domain and they all center on the growth options that firms possess. The first essay introduces growth option value--the proportion of the firm's value accounted for by growth options--and provides a way to estimate it. Growth option value is then related to a number of internal and external corporate development activities commonly viewed as investments with embedded future growth opportunities. The analysis builds on a dynamic panel dataset of 293 firms from 1989-2000, and the results indicate that firms' investments in research and development and in joint ventures (JVs) contribute significantly to growth option value, while investments in tangible capital and in acquisitions do not. The essay helps identify boundaries for the application of real options theory to strategy and the variable growth option value would have more general implications for future research on real options. The second essay aims to contribute to the JV literature by critically examining a proposition long held in the strategy and international business literature, namely, JVs represent valuable options to expand under market and technological uncertainty. The essay first develops a contingent framework of this proposition and then empirically tests it. The findings suggest that while JVs do enhance growth option value, they do so only under certain circumstances. Specifically, international joint ventures (IJVs) contribute to growth option value in general, and minority IJVs and diversifying IJVs have significant effects in particular, irrespective of whether the ventures are located in developed or emerging economies. The third essay is a variance decomposition study of growth option value. The findings suggest that stable firm effects are almost twice as much important as total industry effects on growth option value, and that year effects are relatively unimportant. These results hold when single-business firms and manufacturing firms form sub-samples for additional analyses. These results have broader implications for research in strategic management and real options, given the importance of the growth of the firm to corporate strategy and that of growth options to resource allocation and value creation.
Author: Arto Suvas
Publisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 196
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Author: Julien Salanave-Pehe
Publisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 0
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Why do most new firms which survive not grow while a handful grow sporadically, and rare outliers grow disproportionately? The prolific multi-disciplinary firm growth literature offers limited, disjointed, and inconclusive explanations of new venture growth. This dissertation, structured in three essays, examines the under-investigated nonlinear processes and outcomes of growth in new firms from different angles. In the first essay, the notion of new firm growth is explored from a theoretical perspective and a novel overarching conceptualization is proposed that spans across different theoretical lenses and levels of analysis. Reconciling different theoretical approaches is important because no single theory developed so far singlehandedly offers a comprehensive explanation as to why new firm growth is rare, sporadic, and highly skewed. By reframing the Penrose resource logic of firm growth as a system of process-outcome interactions and making use of organizational theories of change to further characterize these interactions, the essay proposes that nonlinear patterns of resource accumulation within and across new firms arise from feedback loops between teleological, evolutionary, and dialectical mechanisms of organizational change. This allows to reconcile three seemingly juxtaposing theoretical perspectives on the causality of firm growth being deterministic, voluntaristic or stochastic Firm-level growth nonlinearities are explored empirically in the second essay by testing the assumption of non-linear effects of resources on new firm growth. Emphasis is placed on financial resources, because they are foundational to acquiring other forms of resources, are highly versatile and comparable across industries and settings. Competing hypotheses of a positive linear, negative linear and curvilinear effect of financial resources on early growth outcomes in new firms are tested by aggregating meta-analytic evidence across a sample of published studies. By rejecting the linear positive and linear negative hypotheses and confirming the curvilinear relationship, the findings indicate more nuanced effects of versatile resources on growth in the uncertain context of new firms than prominently considered in resource-based literature. In the final essay, population-level nonlinearities of growth are studied by exploring under which conditions a parsimonious process whereby new firms allocate resources to pursue uncertain opportunities may explain the empirical regularities (rare, sporadic, and highly skewed) of new firm growth and result in a heavy-tailed distribution of growth outcomes across a population of new firms. Using an agent-based simulation, we also control for key parameters potentially influencing the process. Closest alignment of the proposed process with empirical regularities is found when (i) founding sizes of new firms are normally distributed, (ii) new firms follow bounded rationality rules to select which uncertain opportunities to pursue rather than randomly pick them, and (iii) the degree of uncertainty affecting opportunities is low to moderate. These findings shed new light on other generative mechanisms of growth and heavytailed firm size distributions considered in literature. The essay also introduces novel operationalizations of important theoretical constructs in entrepreneurship literature: opportunity, uncertainty, and product market fit
Author: Stefano Bianchini
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Amir Amel-Zadeh
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Rory Mullen
Publisher:
ISBN:
Category :
Languages : en
Pages : 121
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In chapter one I study pairwise covariances of firm-level productivity, sales, and profit growth rates for public firms in the United States. The data suggest that pairwise covariances of firm growth rates drive the variance of aggregate growth rates in all three variables. High-productivity firms contribute most to aggregate variance in absolute terms, but least per dollar of market value-which may explain why investors demand lower returns from high-productivity firms. A tractable DSGE model helps explain the evidence on firm-level covariance endogenously. In the model, a firm's expected excess stock returns increase as the firm's productivity covaries more with aggregate productivity, relative to the firm's market value. In chapter two, coauthored with Daisoon Kim, we ask where fluctuations in aggregate productivity come from, and what role markups and scale economies play in transmitting fluctuations in firm productivity to aggregate productivity. We develop an empirical framework that decomposes TFP into industry, peer, firm, and entry-exit components. We aggregate these components using a new approximate expression for aggregate TFP that lets us investigate explicitly the role of markups and scale economies in transmitting firm TFP innovations to aggregate TFP. In an application using data on public firms, we find that innovations to the firm-specific component of firm TFP drive most fluctuations in firm TFP, while innovations to the industry component drive most fluctuations in aggregate TFP. Innovations to the peer component appear to play a modest role.
Author: Issam Moussaoui
Publisher:
ISBN:
Category : Industrial management
Languages : en
Pages : 222
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Operational excellence is an executional competency that reflects a firm's ability to run its day-to-day operations efficiently, effectively, and profitably. Differing views have been expressed regarding the inner dynamics and value creation potential of operational excellence. From an inner dynamics perspective, the competency's dimensions of efficiency and effectiveness are viewed by some as conflicting and difficult to reconcile (the tradeoff model), and by others as synergistic and mutually supportive (the cumulative model). From a value creation perspective, operational excellence is portrayed by some as an effective cash-flow generator and a potent enabler of firm growth, and by others as a source of excessive routinization that hinders strategic adaptation and limits long-term value creation. The present dissertation revisits these conflicting views. Drawing on Porter's profit maximization prescription, essay 1 empirically examines the individual and collective effects of operational efficiency and operational effectiveness on firm profitability. In so doing, it assesses the respective merits of the tradeoff and cumulative perspectives. Empirical findings based on a multi-industry panel of 595 public US manufacturing firms provide relative support for the cumulative perspective; concurrent improvements in efficiency and effectiveness are shown to have a compounding positive effect on firm profitability. The findings also show that the individual benefits of isolated improvements to either efficiency or effectiveness tend to be curvilinear with diminishing returns. Addressing the value creation question, essay 2 draws on signaling theory to empirically examine the stock market's ex-ante assessment of operational excellence as an instrument for long-term value creation. Contrary to the productivity dilemma narrative, empirical results show that market participants tend to have a positive outlook on the value creation potential of operational excellence. The positive outlook is, however, found to be dampened by the stock market's expectations of firm short-term revenue growth and amplified by firm R&D efforts. In a third exploratory essay, I discuss environmental and organizational learning factors that have the potential to cause firms to grow over-invested in operational excellence at the expense of strategic foresight and market adaptation. Essay 3 is conceptual in nature and provides theoretical propositions for future empirical investigation.
Author: Alain Verbeke
Publisher: Emerald Group Publishing
ISBN: 1787438414
Category : Business & Economics
Languages : en
Pages : 565
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Book Description
The twelfth volume in the Progress in International Business Research series presents extensive accounts of the contemporary scientific debate on how to assess the impacts of distance, both negative and positive ones, on the conduct of international business.
